The Nanosonics Ltd (ASX: NAN) share price is having a very strong day on Wednesday.
In afternoon trade, the infection prevention company’s shares are up over 10% to $3.96.
What’s going on with the Nanosonics share price?
Investors have been bidding the Nanosonics share price higher today despite there being no news out of the company.
However, it is worth highlighting that the healthcare sector is performing strongly today, as are a range of beaten down shares.
In respect to the former, in afternoon trade the S&P/ASX 200 Health Care index is up a sizeable 2%. That’s despite the ASX 200 index trading 0.5% at the time of writing.
As for the latter, a number of beaten down ASX shares are recording double digit gains on Wednesday. This includes the likes of Life360 Inc (ASX: 360), Megaport Ltd (ASX: MP1), Mesoblast limited (ASX: MSB), and Zip Co Ltd (ASX: ZIP).
Some investors appear to believe that the selling has been overdone and now is the time to pounce.
Nanosonics is one of the most shorted shares on the Australian share market. At the last count, the company had over 12% of its shares in the hands of short sellers.
If some short sellers have decided to close positions, then they could be boosting the buy side by buying shares today.
Whatever the reason, with the Nanosonics share price still down ~40% in 2022, shareholders will no doubt be hoping there are more strong gains to come.